BMW Confirms X1 Compact SAV

The idea behind BMW's upcoming X1 isn't hard to understand. It combines all the traits

that people love about compact cars - size, maneuverability, fuel economy, affordable pricing - with the vantage point of a crossover vehicle. Given that the X3 is slated to be replaced by the end of the decade, with a growth in size expected, room has been cleared for a new, smaller vehicle.

BMW's plans, which were mere rumors for quite some time, have now officially been confirmed in an announcement that the brand is going to be building the X1 at its Leipzig plant, alongside the 1-Series hatchback and coupe and the 3-Series. Besides sharing components with both of these vehicles, this facility was opted for due to the location of production; the X1 is expected to be most popular in Europe. For similar reasons, production of the next generation Z4

will move to Germany, while the X3, which is popular in North America, will be built in South Carolina. BMW's xDrive all-wheel drive system will be on offer, and power is expected to come from a range of PSA-BMW four-cylinder engines as well as the brand's trademark inline-six.

In addition, test mules have been spotted for the next generation of BMW's 1-Series. BMW is seeking to rectify the key complaints of the current car – cramped rear quarters and small cargo space – with a larger platform incorporating a longer wheelbase and wider tracks. Expect the next 1-Series to be launched after the debut of the X1. This could potentially mean the availability of a 1-Series hatchback here in North America, where only the two-door notchback coupe and cabriolet are currently sold.